Re: Home Equity Loans
Depo hit the nail on the head. If your going to add value to the house, etc go for it. If your paying off credit cards that are not crazy rates (and they should not be now days with so many good offers floating around), buying toys, going on vacation, etc it probaly is not a good choice. Remember, your paying intrest on that money for 15 years, not the 2 or 3 or 5 or whatever it will take to pay off your credit cards. You just got to remember your are borrowing money, and paying interest on it, for a long time (15 years in this case.) Its not "free" money. Sometimes having one monthly payment and no other debt "looks" clean and tidy...but in the long run it may not help you. If you already have gotten yourself in a bad situation where you cant afford your monthly bills right now, it can be a solution in the short term. But your not fixing whats broken...your just spreading payments out longer...and paying interest on them. You need to do the math, crunch the hard numbers, and see what benifits you the best. You seem to be focused on monthly payments, thats a factor of how much you spend (or already have), and how long you take to pay it off, juggling the numbers doesnt matter. What matters when your dealing with interest is the longer you pay on it, typicaly the more you spend.